David Carlisle > I have a text file containing malformed HTML text I want to import as
> CDATA into a template, to be called from my stylesheet.
If you are using XSLT2 (ie saxon8) you could do ...
<xsl:import href="http://www.dcarlisle.demon.co.uk/htmlparse.xsl"/>
...
<xsl:template match="...">
...
<xsl:copy-of
select="d:htmlparse(unparsed-text('file-with-html-in-it.html','ISO-8859-1'))
"/>
...
</xsl:template>
</xsl:stylesheet>
For XSLT1 you really need to convert your file to well formed xml first tidy
or tagsoup could do this (see google for URLs for these) | 
| XSL Frequently Asked Questions